Property sale in ‘scalping paradise of iPhones’ records 82% loss
Retail prices for stalls at a popular Mong Kok mall known as the “scalping paradise of iPhones” sank to one of the worst levels in decades, the latest data from the Hong Kong government shows.
A stall space of 56 square feet in Sin Tat Plaza recently sold for HK$1.1 million (US$141,900), or HK$19,642 (US$2,534) per sq ft, according to Land Registry records. The previous owner made a loss of HK$5.2 million, which was 82 percent less than the selling price in 2012.
It was one of the lowest price levels in decades; back in 1994, the same stall went for HK$2 million.
Another stall, measuring 62 square feet and located on a different floor, changed hands for HK$1.5 million, HK$5.32 million less than its transaction price in 2014 and a drop of 78%.
Dubbed the “scalping paradise of iPhones,” Sin Tat Plaza is a known hub for dealers who buy the latest Apple models in bulk to flip for a profit.
The COVID-19 pandemic following months of social unrest in the city has dealt a further blow to the retail property market, as government officials struggle to keep the economy afloat during the city’s worst recession in years.
The deal at Sin Tat Plaza was one of only four transactions this year. Earlier this year in February, the seller of another stall had a better deal, offloading his property for HK$700,000, with a loss of only HK$130,000.
Rental prices in prime areas have also seen steep declines. A retail space of 4,120 sq ft at the skyscraper 9 Queen’s Road Central was leased for HK$222,000, or HK$54 per sq ft, breaking the building’s lowest record of HK$57.50 per sq ft registered in April, according to a real estate source.
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